Strong Prospects For Salmon Markets

GLOBAL - An extremely cold winter 2009, declining production in Chile, a strong Norwegian Kroner and strong demand for crises resistant salmon have led to the current stronger prices.

According to experts at the recent North Atlantic Seafood Forum in Oslo, high prices for salmon are set to continue throughout and beyond 2010, says Finnian O'Luasa from Bord Bia.

Norwegian salmon production came to 855,000 tonnes in 2009 which was a rise of some 15.4 per cent on 2008 levels. However, production for 2010 is only expected to rise by seven per cent with an even more modest increase of two per cent anticipated for 2011 according to Nordea analyses. One of the main reasons for this stabling of production change is that the Maximum Allowable Biomass limit in Norway is almost reached thereby limiting significant production growth potential.

Chilean production fell by 41 per cent in 2009 with a further drop of 70 per cent forecast for 2010 due to well known salmon health problems. This will no doubt begin to pick up again from 2011 thanks to revised farming strategies. However, a volume gap will remain in the market until biomass reaches marketable size probably beyond 2012.

However this tight market situation may not be as rosy as it appears, one of the main fears expressed in Oslo being the possibility of rising salmon prices penalising both processors and consumers and therefore encouraging displacement to other species.

However this tight market situation may not be as rosy as it appears, one of the main fears expressed in Oslo being the possibility of rising salmon prices penalising both processors and consumers and therefore encouraging displacement to other species.

On this last point cod stocks in the North sea and the Barents sea are increasing as are stocks of North East Arctic Haddock.